Building MaintenanceDocumentation ProcessOpportunity Execution Project for Technology Entrepreneurship Stanford Universtity
Building Maintenance Documentation ProcessSales and Marketing Strategy• Since our idea is based on the internet our project will be sold online through a website.• There will only be one distribution channel for our product which will be through our website which will be the only place to purchase the product.• Since our website is the only connection to our product we have to build interest in the product by getting information about it out to people working in the construction industry. This can be done email and connections like Linkedin so word of mouth can grow our sales.
Building Maintenance Documentation Process Marketing • Our original idea was the system for compiling the documentation, building the website, smart phone app with QR codes and storing maintenance information on the website. After interviews, potential customers added the ideas for scheduling maintenance and using the system to track the equipment submittal/approval process. • We spoke with a variety of people who would be in the chain: 2 engineers, 2 general contractors, 7 mechanical subcontractors, and 2 maintenance people. • We also ran a survey of the people we talked with. Most said they would use a system like this. Most said they would be willing to pay for the service. • We calculated our initial market size would be about 22485 customers based on the number of engineering, construction and property management firms. • In summary, our interviews and survey did cause us to change the scope of our project. Our initial idea survived intact, but interviews with potential customers revealed additional features they felt should be integrated with the service. In the final analysis, we found that the idea created a foundation for an extensible system that could be a valuable resource for the construction industry.
Building Maintenance Documentation Process Sales • All of our sales would be done through our website. We use a pay system that would allow people to use a credit card to set up their projects in the system. • The system would show a log of payments for monthly usage so a log is kept for each customer using the site.
Building Maintenance Documentation Process Partnerships • The business model we are using does not require partnerships but would benefit from having vendors that want to work with us so we can have more information about their equipment in our database. • During the research done in the class we learned that the two groups that would benefit the most is the General Contractor and the Business owners. The other groups would get something out of it but not as much as the other two. • All of the groups would benefit in cost, time savings and having easier system to get to information.
Building Maintenance Documentation Process Distribution • We would Distribute our product through our website. Customers would submit a project to the site that would automatically setup the job after payment is made through the website. The first couple of years everything would be handled by three original employees. Customer Service would also be provided but would only be available through email for the first couple of years.
Building Maintenance Documentation Process Costs • The cost initially are split between programming and resources for data storage and server services. The programming would be done all by us to keep cost down while we get testing done. The way we will keep cost down in the testing phase is to make the first versions of the system run on our own private network before moving to paid system through Amazon. • When it is time to do final testing the system will move to Amazon EC2 and S3 products. The testing phase will cost us more on the EC2 product since it is based on the number on hours and data processed. Initially we know we will be running on a Linux server platform and will need a lot of hours for testing. Since we know that the medium business model cost 0.130 hour if we plan to using it for 24 hours for 30 days we end up with $93.60 a month for our server services. There is a chance that our application could require high CPU usage which based on Amazon chart for medium size business could require an additional $178 dollars and $0.10 an hour. The requirements in the beginning are set a little higher to prepare for the possibility the small business service may not be enough. The storage requirements will not be quite as much in testing, if we look at using 2 TB in the testing process and cost per GB is $0.80 then we are looking at a potential $160 dollars a month running services. • We will have other costs related to business costs like a domainwebsite and cost associated to marketing. A hosted domain and website with three people using Google Apps for business would be $165 dollars a year. The marketing would take advantage of Google Apps to get people to view our website and we would put something in a trade magazine like ENR for $65 month to get information out about our product.
Building Maintenance Documentation Process Revenue Model • The revenue model we plan on using would initially have us setup a project for the General Contractor. We would provide a system of tracking the equipment that is used in the building they are working on as well as a way to maintain equipment. This would provide us with a initial project setup cost and a yearly subscription cost for data storage and server cost. The storage cost would be charged based on how big of block of data that would be needed to maintain the database. • Once the project has been completed the project can be transferred to the building owners. The transfer and yearly subscription and server cost would then be charged to the building owners for maintaining the project.
Building Maintenance Documentation Process Partners and Allies • Starting out we would like to initially start out working in the commercial construction industry which would not provide very many partnerships and allies. • Once the system has had time mature and get to a point were problems have been worked out we would go for residential construction opportunities that could provide us with partnerships and allies we could use. Using some of the small construction companies and equipment vendors could help us improve the product quickly by improving the equipment database.
Building Maintenance Documentation Process Funding • The funding for our product would be initially high due to the cost of getting server space and manage services needed to run our software. There would also be a lot programming and manual information put in to get the system up and going but it be easier manage these cost by doing as much of work ourselves and try to cover the majority of the cost ourselves.